| Original B/L and other inspection certificates were requested by credit but the inspection certificate is requesting a signature of a company "ABC" which is a debtor's affiliates. But the seller attached a forgery inspection certificate by "ABC" company for NEGO. But it created a payment rejection because the signature was inconsistent. As of a result, a negotiating bank institute a law suit declaring that the authenticity of a document's signature is not the duty for a bank.
Case study
1. Bank's duty for document inspection
According to the Article 15 of U.C.P., a bank has no responsibility with formality, sufficiency, accuracy, authenticity, forgery or legal effectiveness on any documents.
2. View of I.C.C on a forgery document
A bank is exempt from a forgery or changes in documents according to the Article 15 of U.C.P. But if a bank has commit an error while inspecting documents, a bank can be responsible in accordance with a judgement of a court. (I.C.C. pub 459. case No.59)
3. Prior recognition of a forgery document
A bank can be responsible if found to commit an error while inspecting documents or recognized the forgery or changes of a document.
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